MSE News: Is it still worth saving in a cash Isa?

hebron

Baldur wrote: »

I've certainly made partial transfers of previous tax years' Cash ISA funds within the past couple of years - you seem to be generalising.

Some ISA providers will permit partial transfers, some won't.

Baldur
I have looked for banks that do partial transfers and never found any.
If you can remember which banks did it for you I would be grateful if you'll tell me ,as I would like to split mine in two halfs. I would like as I said I can keep one in easy access and transfer the rest to a good rate fixed rate.

Thank you

co123456

"For instance, for deposits under £9,000, the top current easy access cash Isa pays 2.65% while the top easy access taxable account pays 3.3% (see the Top Taxable Savings guide)."

Er...... LloydsTSB Vantage? 4% before tax. Can't see any point in opening an ISA.

Baldur

hebron wrote: »

I have looked for banks that do partial transfers and never found any.
If you can remember which banks did it for you I would be grateful if you'll tell me ,as I would like to split mine in two halfs. I would like as I said I can keep one in easy access and transfer the rest to a good rate fixed rate.

The bank from which I transferred my funds was Abbey, at a time when they looked 'rocky', I also decided to split my ISA funds to keep them below the FSCS limit, which was lower than it is now (so we're probably talking about the 2007/8 tax year).

The largest portion of partial previous tax year's funds went to the now-defunct Icesave and the remainder (including the then current tax year's ISA funds) went to Alliance & Leicester.

rb10

Halifax will also send and receive partial ISA transfers.

Baldur

rb10 wrote: »

Halifax will also send and receive partial ISA transfers.

LTSB will definitely accept them, I haven't yet tested whether they support outward transfers but may well have to later this year.

hebron

Baldur wrote: »

The bank from which I transferred my funds was Abbey, at a time when they looked 'rocky', I also decided to split my ISA funds to keep them below the FSCS limit, which was lower than it is now (so we're probably talking about the 2007/8 tax year).

The largest portion of partial previous tax year's funds went to the now-defunct Icesave and the remainder (including the then current tax year's ISA funds) went to Alliance & Leicester.

I remember now doing an ISA transfer for my mother from Abbey and now that you remind me, I did see that you could do partial transfers. I wish I had remembered that as I could have transfered to Abbey and then out again.
At the moment my rate isn't to bad as I transferred last year to Nat West when there rate was high. It has dropped slightly since but at 3.26% it not bad.
As soon as it drops to a lower level I will be splitting it.
My other ISA is with Bradford and Bingley fixed for 2 years at 3.75%. This is now abbey but I haven't had the need to transfer yet.
Thanks for reminding me that the Abbey group does partial transfers. I wish all of them did it though.

apt

cheeryoleary wrote: »

"For instance, for deposits under £9,000, the top current easy access cash Isa pays 2.65% while the top easy access taxable account pays 3.3% (see the Top Taxable Savings guide)."

Er...... LloydsTSB Vantage? 4% before tax. Can't see any point in opening an ISA.

That is true in the short-term - at least for those who do not have more than the £21,000 in cash savings that can be put into Lloyds Vantage accounts. But base rates are not going to stay at 0.5% and when they get back to the usual 4-5% or higher then the Vantage rate will probably still be at 4% and there will be ISAs offering 5% or more. So if its money you are thinking of saving for a long time it is still better to use the full ISA allowance before 6 April in my opinion.

Innys

apt wrote: »

That is true in the short-term - at least for those who do not have more than the £21,000 in cash savings that can be put into Lloyds Vantage accounts. But base rates are not going to stay at 0.5% and when they get back to the usual 4-5% or higher then the Vantage rate will probably still be at 4% and there will be ISAs offering 5% or more. So if its money you are thinking of saving for a long time it is still better to use the full ISA allowance before 6 April in my opinion.

I agree. On a (kind of) related point, savers who are basic rate tax payers at present may, in future, become higher rate tax payers - at least those in employment. So while the benefits may be marginal now to those tax payers, in future they will reap the rewards of investing in a cash ISA now and keeping it going until then.

Masomnia

The basic rate of income tax could rise, no reason to assume that savings will always be taxed at 20% BR, especially with the deficit the way it is.

Mr_K

There isn't anything to stop the Govt. of the day getting rid of ISAs, and your Tax free savings suddenly becoming taxable. Wouldn't put it past them in the current climate (after the election of course).